New Delhi, September 29 (HS): Wire and cable manufacturer Prime Cable Industries Ltd made a lackluster entry into the stock market today, disappointing its IPO investors with a discounted listing and subsequent selling pressure. Issued at ₹83 per share, the stock debuted at ₹81 on the NSE SME platform, a 2.40 percent discount.
Soon after listing, heavy sell-offs dragged the stock down to the lower circuit level of ₹76.95. Though buying support later managed to break the lower circuit, weakness persisted. By 10:30 a.m., the stock was trading at ₹77.90, marking a 6.14 percent loss for IPO investors in early trade.
Prime Cable Industries’ ₹40.01 crore IPO, open for subscription from September 22 to 24, had garnered an average response from investors. The issue was subscribed 8.28 times overall, with the Qualified Institutional Buyers’ (QIB) quota subscribed 9.91 times and the Non-Institutional Investors’ (NII) share 9.38 times.
The retail category was subscribed 6.89 times. The IPO included a fresh issue of 42 lakh equity shares worth ₹35 crore and an Offer for Sale (OFS) of 6 lakh shares.
Proceeds from the fresh issue will be directed towards civil construction of its plant, purchase of machinery, debt reduction, working capital needs, and other general corporate purposes.According to the company’s prospectus, Prime Cable has demonstrated rapid financial growth in recent years. Net profit rose from just ₹12 lakh in FY 2022–23 to ₹1.79 crore in FY 2023–24, before surging further to ₹7.50 crore in FY 2024–25.
Revenue also grew significantly, registering a compound annual growth rate (CAGR) of over 71 percent, reaching ₹141.10 crore.At the same time, the company’s debt burden has increased.
Borrowings stood at ₹22.74 crore at the end of FY 2022–23, rising to ₹32.71 crore in FY 2023–24, and climbing further to ₹38.43 crore by the end of FY 2024–25. Reserves and surplus also improved steadily, from ₹4.68 crore in FY 2022–23 to ₹6.47 crore in FY 2023–24, and ₹7.73 crore in FY 2024–25.
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Hindusthan Samachar / Jun Sarkar
